DFS Sample Revision Question

Re:DFS Sample Revision Question

Hi Steve,
I've looked at the question you've provided and am now feeling slightly worried!
Having worked through the Osbourne book for DFS, there was nothing in the Consolidated accounts chapter on items in transit, and I was pretty clueless about it in your question! ( not that I was much better at the unrealised profit :-/ ) Unless I've managed to miss part of the chapter, which is possible.....
Is this likely to come up in the exam do you think??

Thanks,
Miny

Re:DFS Sample Revision Question

The question concerned dealt with a company who had already acquired a subsidiary a long time ago. The key consolidation techniques included the consolidation process itself, calculation of minority interests, the goodwill calculation, the reserves carried forward calculation and the elimination of intra-group company balances i.e. cash in transit and unrealised profit on the sale of goods to an inter-group company. These are all key consolidation techniques which are in the DFS syllabus. You will feel comfortable with consolidation techniques but you may have struggled with the "approach" the question took.

I would STRESS that if you got some parts of the question wrong, don't do yourself any injustice - you will not get 100% right on any question in any exam. A question like this may not come up on the exam (but it is highly probable that you will be asked for a consolidated balance sheet/profit and loss). I have said before that in my opinion (bear in mind I am not an examiner) because the consolidation process did not feature that heavily in June 2005 it is likely that it may feature heavily in December 2005. I do not, however, advise on "question spotting". Consolidations may not come up at all but, realistically, I don't think that will happen considering group accounting feature quite heavily on the syllabus.

I apologise if the question has knocked anybody's confidence a bit but it does go to re-iterate that you have got to attempt a broad range of examination style questions which approach different parts of the syllabus in different ways.

Re:DFS Sample Revision Question

Hi Steve,
Thanks for that.
I actually did ok in the question, it turned out I got all the calculations and figures right APART from the item in Transit.
I have looked through the Osbourne book again and still can't see any information on items in transit, and I don't know where i'm going to learn about it now with under a week to go, so I guess i'll just pray!!
Thanks again.
miny

Re:DFS Sample Revision Question

Could you please e-mail me the sample revision question.

My e-mail addresse is Christelwells@aol.com

Re:DFS Sample Revision Question

can someone please email me the sample question. My email address is Cjamieson76@hotmail.com

Thanks